In the context of an unstable onion market, the government has recently resumed onion imports. The increased supply has so far failed to reduce prices. After months of suspension, about 2,280 tonnes of onions entered Bangladesh through the land port of Satkhira since August 10, but had little impact on the retail price.
Market sources at Shyambazar and Karwan Bazar in Dhaka and Khatunganj in Chattogram reported wholesale prices at Tk 65–70 (US$0.55–0.59) per kilogram on August 21, down by Tk 2–3 (US$0.02–0.03) from the previous week. This reduction did not affect retail prices, where onions were sold at Tk 80–85 (US$0.68–0.72) per kilogram in Dhaka kitchen markets. Wholesalers noted that high domestic demand, limited imports, and post-harvest losses of locally produced onions continue to prevent retail prices from falling. They added that prices are unlikely to decrease until new supplies reach the market. Onion imports were put on hold again on August 21.
Observers indicate that the price instability cannot be explained by supply fluctuations alone. The market has, in recent years, been affected by traders hoarding onions to create artificial shortages. Similar manipulation is suspected to have contributed to the current price increases. Weather conditions also played a role, with heavy rain during the harvesting season and a lack of cold storage capacity leading to the waste of more than 20 per cent of the harvest.
The instability is not limited to onions. Prices of eggs, broilers, and vegetables remain high in the capital. In the past week, seasonal vegetables increased by at least Tk 20–30 (US$0.17–0.25) per unit in neighbourhood markets. Traders attribute this to damp or inundated farmland at this time of year, which limits vegetable cultivation and reduces supply. However, observers note that this seasonal disruption is an annual reality and argue that traders use such conditions to justify higher prices.
The recent developments suggest that onion imports alone are insufficient to stabilise prices. Analysts point to the need for measures such as improved cold storage capacity and stronger market oversight to prevent speculative behaviour and ensure supply meets demand.
Source: New Age
